12-09-19 Regular Meeting of the La Porte City Council

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VALUATION OF REMAINDER PROPERTY Description of Remainder Property: The remainder property before and after the acquisition will contain approximately 26.45 acres (1,152,162 SF) of land, of which 0.034 acre (1,486 SF) will be encumbered by the proposed permanent pipeline easement and 0.70 acre (30,492 SF) will be encumbered by the proposed springing temporary workspace easement. The unencumbered remainder property will consist of 25.716 acres (1,120,184 SF). Value of Remainder Before the Acquisition: The value of the remainder before the acquisition is merely a mathematical process by which the value of the partial acquisition is subtracted from the subject whole property. This value is calculated as follows: Value of Subject Whole Property $ 4,320,608 Less: Value of Partial Acquisition $ 28,386 3 Value of Remainder Before Acquisition $ 4,292,222 Value of Remainder Property After the Acquisition Effect on Remainder Property After the Acquisition: The subject property is located in Harris County where pipelines are common. In this instance, the subject is encumbered by multiple pipeline easements and two electric transmission line easements. The proposed easement parallels the existing pipelines and electric transmission line easements on the subject property. The remainder after the acquisition will maintain the same physical characteristics and highest and best use as the subject whole property. Based on this information, the remainder after is not adversely impacted by the proposed acquisition and the per-acre value of the remainder after is the same as the per-acre value of the whole property. In the remainder after scenario, the residual rights not acquired by the proposed pipeline easement are estimated at 1% of the land value and the residual rights not acquired by the proposed springing temporary workspace easement are estimated at 80% of the land value. Highest and Best Use of Remainder After Property: The highest and best use of the remainder after property is the same as the whole property. The highest and best use of the subject does not change as a result of the partial acquisition. The value of the remainder property after the acquisition considers the impact of the project and is estimated as follows: Per Unit % of Value Remainder After Property Area Value Remaining Land Unencumbered 1,120,184 SF @ $3.75 per SF @ 100% = $ 4,200,690 Pipeline Easement 1,486 SF @ $3.75 per SF @ 1% = $ 56 Springing Temporary Workspace Easement 30,492 SF @ $3.75 per SF @ 80% = $ 91,476 Less: Cost to Cure* $ 0 4 Total Value of Remainder After $ 4,292,222 *In this instance there are no cost to cure items. CALCULATION OF DAMAGES If there is any difference between the value of the remainder property before and after the acquisition, the result will be reflected as damages or enhancements to the remainder, as the case may be. The damages, if any, are calculated as follows: 3 Value of Remainder Before the Acquisition $ 4,292,222 4 Less: Value of Remainder After the Acquisition $ 4,292,222 5 Indicated Value of Damages $ 0 Explanation of Damages (if any): The remainder before and after the acquisition are the same and there are no damages. Allen, Williford and Seale, Inc. Page 8